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1 Revised 11/1/2013 November 1, 2013 IMPORTANT INFORMATION You are receiving this letter , Notice and Fact Sheet to inform you how your contributions under the elon university Defined Contribution Plan and/or Tax Deferred Annuity Plan are being invested and how they will continue to be invested if you do not provide or update your investment instructions. Please take note of the following: TIAA-CREF is the investment provider for your plan contributions. Your plan(s) contributions are being automatically invested in in the age appropriate Lifecycle Fund.

2 You have the option to change the way your contributions are invested at any time. If you would prefer to choose an investment other than the Plan s selected default investment option, no fees or expenses will apply to that transfer. For information about the investment options available under the Plan, please refer to the enrollment materials you received or visit your organizations microsite at Please read the attached notice carefully for details. If you have any questions or need assistance, please contact the Office of Human Resources at 336-278-5560 or call TIAA-CREF at 800 842-2252.

3 Revised 11/1/2013 elon university Defined Contribution and Tax Deferred Annuity Plans Qualified Default Investment Alternative (QDIA) Annual Notice You are receiving this notice to inform you how your contributions under the plan are being invested and how such contributions will continue to be invested if you have not provided complete investment instructions. Please disregard this notice if you have already provided complete investment instructions of how you want your future contributions invested in the investment options available in the Plan.

4 Beginning of your first month of eligibility, contributions under the elon university Defined Contribution Plan and/or Tax Deferred Annuity Plan (the Plan ) by elon university (the Employer ) are being invested on your behalf in the default investment as described in this notice if we did not receive complete investment instructions from you. Please note that elon university only contributes to the Defined Contribution Plan. This notice gives you important information about some Plan rules, including: The 8% employer contribution; How your contributions are currently being invested on your behalf (because we did not receive complete investment instructions from you); When your account will be vested (that is, not forfeited when you leave your job), and when you can withdraw your plan account balance; How you can change the way your contributions are invested.

5 And How you can change your beneficiary designation(s) Distributions from 403(b) plans before age 59 , severance from employment, death, or disability may be prohibited, limited, and/or subject to substantial tax penalties. Different restrictions may apply to other types of plans. You can find out more about the Plan in the Summary Plan Description (SPD), which can be obtained from the Plan Administrator at the address listed at the end of this notice. 1. What amount is elon university contributing to my account?

6 1 Year of Service at the university or at an eligible educational institution. 8% Employer Contribution with your 4% mandatory contribution. In addition, to the extent permitted by the Internal Revenue Code, you may elect to have your salary reduced on a tax-deferred basis pursuant to a salary deferral agreement and have the amount you elected contributed by your Employer to your account. Remember, you can always change the amount you contribute to the Plan by completing and submitting in a new salary deferral agreement.

7 2. How will my Plan account be invested? TIAA-CREF has been selected by elon university as the investment provider for your Plan contributions. The Plan lets you invest your account in a number of different investment choices. If you did not choose a different investment option Revised 11/1/2013 or options, your contributions are being invested in the default investment option for Elon s Defined Contribution and Tax Deferred Annuity Plans which is the Age appropriate Lifecycle Fund. If the default investment option changes at any time in the future, you will be notified.

8 The enclosed Fact Sheet for the Lifecycle Funds provide additional information including the investment objectives and strategy, fund/account performance, risk and return characteristics, and fees and expenses. You can obtain updated information on fee expenses and a more detailed explanation of the Lifecycle Funds at or by contacting TIAA-CREF at 800 842-2252. To learn more about the Plan s investment choices, you can review the Plan s SPD. Also, you can contact the Plan Administrator using the contact information at the end of this notice.

9 3. How can I change the investment allocation of the contributions that are being made on my behalf by elon university to another investment choice available under the Plan? The Plan allows you to choose from a diverse set of investment options. A list of the Plan's available funds and a copy of the prospectus or information statement for each fund may be obtained from TIAA-CREF by calling 800 842-2252 or at You have the right to change the investment allocation of your account at any time. If you elect to change the investment allocation of your account from the Lifecycle Fund there are no fees or expenses imposed in connection with that transfer.

10 But certain restrictions may apply if multiple transfers are made from any one account. See the prospectus for more details on restrictions on frequent transfers at You can change how your account is invested, among the Plan s offered investment choices, by contacting TIAA-CREF at 800 842-2252 or accessing your account online at 4. When will my account be vested and available to me? You will always be fully vested in your own contributions to the Plan. You are also 100% vested in the employer contributions made under the Plan by elon university .